London based banking giant HSBC said today it was buying most of the Brazilian assets of rival Lloyds TSB for $815 million, as it expands in consumer finance in North and South America.
HSBC will buy the Losango Promotora de Vendas consumer lending unit and the Brazilian treasury operations of Lloyds for $451 million to add to its Household International US lending business.
It will also buy Lloyds's Brazilian corporate and offshore loan books.
HSBC bought Household, its biggest acquisition, for $14.8 billion in March to add consumer lending to its deposit-based banking business and expand in North America. It is already combining Household with its Grupo Financiero Bital Mexican unit, and is now expanding further south in the Americas.
Lloyds chief executive Mr Eric Daniels, who started in June, is trying to sell assets that don't fit his aim of reviving Lloyds's domestic business. The deal will release about £136 million pounds of capital that Lloyds will be able to use for expanding in Britain and will ease pressure on the bank's dividend.
HSBC's shares were up 1.6 per cent to 856-1/2 pence and Lloyds's stock was up 1.1 per cent to 433-1/3 pence.